Great Western announces financial impact resulting from Tax Cuts and Jobs Act
Great Western Bancorp, the parent company of Great Western Bank, announced the financial impact resulting from the Tax Cuts and Jobs Act of 2017. The Company revalued its deferred taxes, resulting in a non-recurring charge to provision for income taxes of approximately $13.6M for the quarter ended December 31, 2017. The downward revaluation of the deferred taxes is estimated to reduce tangible book value per share by 23c or 1.3% based on common shares outstanding as of December 31, 2017 and to reduce the total risk based capital ratio by approximately 15 basis points. Great Western Bancorp Inc. also noted that, because its fiscal year ends on September 30, the blended federal statutory tax rate for FY18 will be 24.5%, which becomes effective for the Company's financial results for the quarter ended December 31, 2017. The overall effective tax rate is expected to be approximately 26.0% for the FY18.